Burberry share price has staged a strong comeback in the past few days, jumping nearly 10% from its lowest level this month. The BRBY stock has climbed 5.81% higher in the past week and is 19.37% higher in the year to date. The company has a total market cap of £9 billion.
Burberry share price has been trading higher for the past few days, boosting the FTSE 100 index. Burberry’s shares recently reacted to the latest UK retail sales volume data released on Friday. The stock slipped before jumping higher in its next trading session.
Data by the Office for National Statistics revealed that the retail sales volume for February inched 1.2% higher, up from 0.9% in January. This was largely boosted by the 2.4% increase in non-food store sales volumes because of strong sales in department stores. Even so, the 1.1% decline in automotive fuel sales volumes offset some of the gains.
Several analysts have termed Burberry as a quality stock amid the ongoing banking crisis. The British fashion company has quality characteristics and growth potential. Recently, the company purchased an Italian apparel producer and plans to use the purchase to fortify its supply chain. Burberry purchased the company for €21 million to ensure production capacity and expand its operations.
As such, the company’s outlook for this year looks quite promising. However, recession fears in the UK and the US, as well as the rise in the cost of living crisis, may be detrimental to the company’s performance.
Burberry Share Price Outlook
The daily chart shows that the Burberry share price has been performing relatively well for the past few days. At press time, the stock was trading 1.70% higher at 2449p. The stock has managed to move slightly above the 25-day and 50-day moving averages, as well as the 50-day and 200-day exponential moving averages. Its Relative Strength Index (RSI) has moved higher into the neutral zone.
Therefore, the Burberry share price is likely to continue rising in the medium term as buyers target the next resistance levels at 2608p and 2800p. On the flip side, a move below the 50-day EMA will invalidate the bullish thesis.